Ita/440/2022 Of The Pr Commissioner Of Income Tax v. G N Venugopal

Digitallysigned byBHARATHI SLocation:HIGH COURTOFKARNATAKA ITA No. 440 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30 DAY OF SEPTEMBER, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 440 OF 2022 BETWEEN: 1. THE PR COMMISSIONER OF INCOME TAX CENTRAL CIRCLE C R BUILDING QUEENS ROAD BENGALURU-560 001 CENTRAL CIRCLE C R BUILDING QUEENS ROAD BENGALURU-560 001 2. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2 (4) (1) PRESENT ADDRESS DCIT CENTRAL CIRCLE 2(4) C R BUILDING QUEENS ROAD BENGALURU -560 001 CENTRAL CIRCLE 2 (4) (1) PRESENT ADDRESS DCIT CENTRAL CIRCLE 2(4) C R BUILDING QUEENS ROAD BENGALURU -560 001 …APPELLANTS (BY SRI. RAVI RAJ Y V.,ADVOCATE) AND: G N VENUGOPAL 344 GANIGARA BEEDI, 6TH WARD DEVANAHALLI TOWN DEVANAHALLI -562110 PAN - …RESPONDENT (BY SRI. BALRAM R RAO.,ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO. 215/BANG/2020 DATED 11/04/2022 FOR ASSESSMENT YEAR 2013-2014 ANNEXURE C AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(4), BENGALURU AND ETC. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT and HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri. Dilip. M., along with Sri. Raviraj. Y.V, for appellants/Revenue and learned counsel Sri. Balaram. R Rao, learned counsel for the respondent/assessee. 2. The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 11.04.2022 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in ITA No.215/Bang/2020 for the assessment year 2013-14, raising the following substantial questions of law: - 3 - “1. Whether in the facts and circumstances of the case and in law the Hon’ble Tribunal was justified in holding that the assessee had not carried out any business in purchase and selling lands and that the profits earned on such transactions is not taxable as business income? case and in law the Hon’ble Tribunal was justified in holding that the assessee had not carried out any business in purchase and selling lands and that the profits earned on such transactions is not taxable as business income? 2. Whether in the facts and circumstances of the case and in law the Hon’ble Tribunal was justified in holding that the profits earned from sale of lands purchased was not business income? case and in law the Hon’ble Tribunal was justified in holding that the profits earned from sale of lands purchased was not business income? 3. Whether on the facts of the case and in law, the Hon’ble Tribunal’s order can be said as perverse in nature in accepting the contention of the assessee that the whole of the consideration is exempt under section 2(14)?” the Hon’ble Tribunal’s order can be said as perverse in nature in accepting the contention of the assessee that the whole of the consideration is exempt under section 2(14)?” 3. Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue. 3. Whether on the facts of the case and in law, the Hon’ble Tribunal’s order can be said as perverse in nature in accepting the contention of the assessee that the whole of the consideration is exempt under section 2(14)?” the Hon’ble Tribunal’s order can be said as perverse in nature in accepting the contention of the assessee that the whole of the consideration is exempt under section 2(14)?” 3. Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue. 4. On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024. 5. In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE BS List No.: 1 Sl No.: 34